BE
IT RESOLVED, by the city council of the city of Duluth, Minnesota (the
city), as follows:

Section
1.Capital improvement plan.

1.01(a)Under
and pursuant to Minnesota Statutes, Section 475.521 (the act), the city
council has authorized preparation of a capital improvement plan for the
years 2006 through 2010 which has been presented to the city council in
a document entitled “Capital Improvement Budget and Five Year Plan
2006-2010,” dated October 2005 (the plan);

(b)The
city council has caused due notice to be given and has this day held a
public hearing as required by the act, to provide an opportunity for residents
to express their views on the plan;

(c)The
city council has considered the following for each project discussed in
the plan and for the overall plan:

(1)The
condition of the city’s existing infrastructure, including the projected
need for repair or replacement;

(2)The
likely demand for the improvement;

(3)The
estimated cost of the improvement;

(4)The
available public resources;

(5)The
level of overlapping debt in the city;

(6)The
relative benefits and costs of alternative uses of the funds;

(7)Operating
costs of the proposed improvements; and

(8)Alternatives
for providing services more efficiently through shared facilities with
other cities or local government units.

1.02(a)Based
on the considerations set forth in the plan and Section 1.01(c) hereof,
the city council finds that the plan is desirable and beneficial to the
city and its residents;

(b)The
city council finds that the proposed improvements under the plan will
result in no unnecessary duplication of public facilities provided by
other units of government in the region.

1.03The
plan is approved.

Section
2.Intent to issue bonds and reallocation of bond proceeds.

2.01(a)The
city council is considering the issuance of capital improvement bonds
under the act and Minnesota Statutes, Chapter 475, in an amount not to
exceed $915,000 (the bonds), for the purpose of providing funds for continuation
of the restoration of the granite and brick facades of City Hall; roofing
projects at Fire Station No. 2 and the public works maintenance facility;
remodeling of city offices in City Hall; fire department facilities repairs
and maintenance including driveways, window and brick repairs and overhead
door replacements; replacing the public works Lakeside Toolhouse with
a new maintenance facility; upgrading an existing public works garage
to comply with OSHA and code standards for the storage of cold asphalt;
and payment of discount and costs of issuance;

(b)The
city hereby expresses its intent to issue the bonds for the project in
an aggregate principal amount not to exceed $915,000, pursuant to the
plan, the act and Minnesota Statutes, Chapter 475;

(c)The
city will issue the bonds if no petition requesting a vote on the issuance
of the bonds signed by voters equal to five percent of the votes cast
in the city in the last general election is filed with the city clerk
within 30 days after the date of the public hearing described in Section
2.03 of this resolution.

2.02The
city council shall hold a public hearing on the issuance of the bonds
at 7:00 p.m. on January 23, 2006. The city clerk is authorized and
directed to cause the notice of public hearing, substantially in the form
on file in the office of the city clerk as Public Document No. __________,
to be published in the official newspaper of the city or a newspaper of
general circulation in the jurisdiction of the city not less than 14 days
nor more than 28 days prior to the date set for the public hearing.

2.03The
administrative staff of the city and its agents are hereby authorized
to take such further action necessary to carry out the intent and purpose
of this resolution and the requirements of the act.

STATEMENT
OF PURPOSE: This resolution approves the 2006-2010 capital
improvement plan and calls for a public hearing on the intention to issue
improvement bonds, in the maximum amount of $915,000 ($870,000 for project
costs and the balance available for costs of issuance and discount).